What is non-neutral technical change

Assignment Help Business Economics

Reference no: EM131000838

What is neutral technical? What is non-neutral technical change? Suggest a specific example of nonneutral technical change that occurred in the US. In England until 1950, many homes were heated by burning coal in a fireplace; now most homes are heated by an electric or gas heating system. This was a change in technology. Would you classify it as a neutral or non-neutral technical change, and why?

Reference no: EM131000838

Questions Cloud

Which good is likely to have more elastic demand : Which good is likely to have more elastic demand: soda or new cars? Explain your answer, also assume that all brands of each good experience a price change.

Does the confidence interval include the population mean : Assume that the price of housing in Corpus Christi is normally distributed. Based on our random sample of 23 houses we surveyed, we calculated that x = $299,756.2 with the standard deviation s = 107.11. If we know that the population mean, mu = 299,7..

Substitution between visiting gym and consuming all goods : Hulk goes to the gym 20 times a month. His income is $1000 per month and his visits to the gym cost $4 per visit. For simplicity, assume all other goods that Hulk consumes besides the gym costs $10 each. Assume Hulk exhibits diminishing marginal rate..

Present worth of saving to utility between old and contracts : El Paso Water Utilities (EPWU) purchases surface water for treatment and distribution to EPWU customers from El Paso County Water Improvement District during the irrigation season. A new contract between the two entities resulted in a reduction in fu..

What is non-neutral technical change : What is neutral technical? What is non-neutral technical change? Suggest a specific example of nonneutral technical change that occurred in the US. In England until 1950, many homes were heated by burning coal in a fireplace; now most homes are heate..

Measure of natural resources used in production : Consider a production function of the form Y = AF (K, N, Z), where Z is a measure of natural resources used in production. Assume this production function has constant returns to scale and diminishing returns in each factor. What will happen to outpu..

Cost-push inflation is a rise in the general price level : Cost-push inflation is a rise in the general price level due to higher input prices. Cost-push inflation is a rise in the general price level due to the economy operating past or above potential output/income.

Identified two sources of macroeconomic expectations : If inventory levels across the nation are unexpectedly low, what would you expect to see happen to unemployment and inflation? Economists have identified two sources of macroeconomic expectations, what are they?

Produces zero output in the short run : Which of the following is not true if a firm shuts down and produces zero output in the short run: A. Variable cost will be zero B. Losses will be incurred C. Fixed costs will be greater than zero D. Fixed cost will be less than zero.

User Account

All Pages